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Anthony Lacavera, Chairman, Globalive and WIND Mobile, speaks at a press conference on December 11, 2009, responding to the Government of Canada's decision to vary a previous Canadian Radio-Television and Telecommunications ruling and allow Globalives brand, WIND Mobile, to enter the market without delay. JENNIFER ROBERTS FOR THE GLOBE AND MAIL
Anthony Lacavera, Chairman, Globalive and WIND Mobile, speaks at a press conference on December 11, 2009, responding to the Government of Canada's decision to vary a previous Canadian Radio-Television and Telecommunications ruling and allow Globalives brand, WIND Mobile, to enter the market without delay. JENNIFER ROBERTS FOR THE GLOBE AND MAIL
(JENNIFER ROBERTS For The Globe and Mail)

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Fongo's Wind bid looks like a publicity stunt

Apparently there’s a telecom company in Canada worth $1-billion that has been flying under the radar until now – because a surprise bid for Wind Mobile from a company called Fongo Inc. suggests that either that is what Fongo is worth or this is an offer that deserves a healthy dose of skepticism.

The expectation is that Wind Mobile, which is up for sale, will fetch bids in the $500-million to $1-billion range. Fongo, which bills itself as “Canada’s fastest growing mobile telecommunications company” is basically proposing a merger, with Wind’s current owner getting $1 and 49 per cent of Fongo. Do the math. To get to $500-million, that suggests Fongo must be worth $1-billion. To get to $1-billion for Wind, Fongo would have to be worth $2-billion.